An Externality Exists When

question 44

Multiple Choice

An externality exists when

• A) goods are sold in specific geographic locations.
• B) some of the benefits or costs associated with a good are borne by third parties.
• C) the government taxes a good.
• D) the government subsidizes a good.

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Definitions:

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior.

Spontaneous Recovery

The reappearance of a response (conditioned response) that had been extinguished after some time has passed without exposure to the conditioned stimulus.

Respondent Behavior

Behavior that occurs as an automatic response to a certain stimulus, not requiring conscious thought.

Sniffing

The act of inhaling through the nose to detect smells, which can also refer to the abuse of inhalant substances for recreational purposes.